Mortgage Brokers Urged To Check Compliance

July 23, 2008 by Brendan O'Neill

Mortgage Advisors

Within our articles section, we aim to publish news and information of relevance to those not just looking for CeMAP training but also for those who may have already achieved their CeMAP qualification and wish to stay up to date. In the last few weeks, we have published several news articles highlighting recent fines imposed by the FSA (Financial Services Authority) on mortgage brokers and intermediary firms.

Now, MS2M, a compliance specialist, has also highlighted these and is urging mortgage brokers to ensure they have the fundamental systems in place to ensure they can avoid a similar fate.

Julie Alderson, director of MS2M, stated these recent fines should be seen as a warning to others and reminds them to review how they manage their business.

Recently, four CeMAP-qualified mortgage advisors have been banned for poor sales practices and others were fined, like the Think Group, which received a £900,000 fine for unsatisfactory documentation.

Ms Alderson reminded mortgage brokers that if they do not adhere to good industry practice guidelines, they run the high risk of punishment. She said:

“It’s a great opportunity for responsible advisers to go back to basics in terms of the management of their firms and to revisit their core practices. The risks are too high to ignore putting fundamental systems and processes in place.”

According to figures from the BBC, the FSA has banned 13 mortgage brokers so fat this year – we believe that figure is probably higher now following our article yesterday. If you are looking to become a mortgage advisor and hence you are here considering CeMAP training, compliance is something you will learn about.